The anti-establishment Five Star Movement and far-right League are ready to name a prime minister.

Matteo Salvini(C), Leader of Lega political party, Silvio Berlusconi, Leader of Forza Italia and Giorgia Meloni, leader of Fratelli d'Italia speaks to the press after a new day of meetings with Italian President Sergio Mattarella on formation of the new government on May 7, 2018 in Rome, Italy. (CREDIT: Antonio Masiello/Getty Images)

In a major victory for populism in Europe, two of Italy’s anti-establishment parties have agreed to form a government by naming a prime minister and presenting a policy program that is expected to include several far-right proposals.

The Five-Star Movement (MS5), led by the 31-year-old Luigi Di Maio, has reportedly reached an agreement with the far-right Lega Nord (Northern League, or simply the League), led by Matteo Salvini, over a number of key policy proposals. The two parties still have to agree on their prime minister, who then has to be approved by Italian President Sergio Mattarella, but once approved, there will likely be rapid political change in the country.

Chief among the proposals being made are a flat tax rate as low as 15 percent, a universal basic income, and a pledge to renegotiate Italy’s relationship with the European Union. However, the League also has some extremely hard-line view on immigration.

The Five-Star Movement is not as hardline as the League, due to its more anarchic political set-up, but has expressed similar anti-immigrant rhetoric. In January, Di Maio said that Italy should work on trying to improve its own birthrate rather than “resigning” itself to immigration.